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L Brands Reports April 2014 Sales And Increases First Quarter Earnings Guidance

May 8, 2014

COLUMBUS, Ohio, May 8, 2014 /PRNewswire/ – L Brands, Inc. (NYSE: LB) reported net sales increased 9% to $717.6 million for the four weeks ended May 3, 2014, compared to net sales of $660.5 million for the four weeks ended May 4, 2013.  Comparable stores sales increased 8% for the four weeks ended May 3, 2014.

The company reported net sales of $2.391 billion for the 13 weeks ended May 3, 2014, an increase of 5% compared to sales of $2.268 billion for the 13 weeks ended May 4, 2013.  Comparable stores sales increased 2% for the 13 weeks ended May 3, 2014.

The company expects to report first quarter earnings per share of $0.50 to $0.52, versus its previous estimate of $0.44 to $0.49.  The company will update its full-year earnings guidance on May 21.

To hear further commentary provided on L Brands’ prerecorded April sales message, call 1-866-639-7583 (1-866-NEWS-LTD), or log onto www.LB.com for an audio replay.  The company will release its first quarter earnings after the close of the market on May 21 and hold its conference call at 9:15 a.m. Eastern on May 22.  The conference call is starting 15 minutes later than normal to allow for the company’s 8:30 a.m. annual meeting.

ABOUT L BRANDS:

L Brands, through Victoria’s Secret, Pink, Bath & Body Works, La Senza and Henri Bendel, is an international company.  The company operates 2,923 company-owned specialty stores in the United States, Canada and the United Kingdom and its brands are sold in about 600 franchised additional locations world-wide.  The company’s products are also available online at www.VictoriasSecret.com, www.BathandBodyWorks.com, www.HenriBendel.com and www.LaSenza.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

L Brands, Inc. cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or the April sales call involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or the April sales call:

    --  general economic conditions, consumer confidence, consumer spending
        patterns and market disruptions including severe weather conditions,
        natural disasters, health hazards, terrorist activities, financial
        crises, political crises or other major events, or the prospect of these
        events;
    --  the seasonality of our business;
    --  the dependence on a high volume of mall traffic and the availability of
        suitable store locations on appropriate terms;
    --  our ability to grow through new store openings and existing store
        remodels and expansions;
    --  our ability to successfully expand into global markets and related
        risks;
    --  our relationships with independent licensees and franchisees;
    --  our direct channel businesses;
    --  our failure to protect our reputation and our brand images;
    --  our failure to protect our trade names, trademarks and patents;
    --  the highly competitive nature of the retail industry generally and the
        segments in which we operate particularly;
    --  consumer acceptance of our products and our ability to keep up with
        fashion trends, develop new merchandise and launch new product lines
        successfully;
    --  our ability to source, distribute and sell goods and materials on a
        global basis, including risks related to:
        --  political instability;
        --  duties, taxes and other charges;
        --  legal and regulatory matters;
        --  volatility in currency exchange rates;
        --  local business practices and political issues;
        --  potential delays or disruptions in shipping and transportation and
            related pricing impacts;
        --  disruption due to labor disputes; and
        --  changing expectations regarding product safety due to new
            legislation;
    --  fluctuations in foreign currency exchange rates;
    --  stock price volatility;
    --  our failure to maintain our credit rating;
    --  our ability to service or refinance our debt;
    --  our ability to retain key personnel;
    --  our ability to attract, develop and retain qualified employees and
        manage labor-related costs;
    --  the inability of our manufacturers to deliver products in a timely
        manner and meet quality standards;
    --  fluctuations in product input costs;
    --  fluctuations in energy costs;
    --  increases in the costs of mailing, paper and printing;
    --  claims arising from our self-insurance;
    --  our ability to implement and maintain information technology systems and
        to protect associated data;
    --  our failure to maintain the security of customer, associate, supplier or
        company information;
    --  our failure to comply with regulatory requirements;
    --  tax matters; and
    --  legal and compliance matters.

We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release or the April sales call to reflect circumstances existing after the date of this report or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.  Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our 2013 Annual Report on Form 10-K.

L BRANDS

APRIL 2014

Comparable Store Sales Increase (Decrease):

April

2014

April

2013

First

Quarter

2014

First

Quarter

2013

Victoria’s Secret(1)

8%

2%

2%

3%

Bath & Body Works(1)

8%

4%

2%

3%

L Brands

8%

2%

2%

3%

Victoria’s Secret

Direct Sales

 

(3%)

 

(4%)

 

0%

 

(6%)

(1) – Results include company-owned stores in the United States and Canada.

 

Total Sales (Millions):

First Quarter

 2014

First Quarter

 2013

Victoria’s Secret Stores(1)

$ 1,245.3

$ 1,184.6

Victoria’s Secret Direct

358.3

359.1

  Total Victoria’s Secret

$ 1,603.6

$ 1,543.7

Bath & Body Works(1)

$ 530.2

$ 517.1

Bath & Body Works( )Direct

51.4

43.7

  Total Bath & Body Works

$ 581.6

$ 560.8

VS & BBW International(2)

$  71.0

$  40.4

Other

$ 135.0

$ 123.1

L Brands

$ 2,391.2

$ 2,268.0

(1) – Results include company-owned stores in the United States and Canada.

(2) – Results include retail sales from company-owned stores outside of the

United States and Canada, royalties associated with franchised stores and

wholesale sales.

 

Total Company-Owned Stores:

Stores

Stores

Operating

Operating

at 2/1/14

Opened

  Closed

at 5/3/14

Victoria’s Secret U.S.

977

1

(2)

976

PINK U.S.

83

6

-

89

Victoria’s Secret Canada

24

1

-

25

PINK Canada

10

-

-

10

   Total Victoria’s Secret

1,094

8

(2)

1,100

Bath & Body Works U.S.

1,559

1

(7)

1,553

Bath & Body Works Canada 

79

3

(1)

81

   Total Bath & Body Works

1,638

4

(8)

1,634

Victoria’s Secret U.K.

5

2

-

7

Henri Bendel

29

-

-

29

La Senza Canada

157

-

(4)

153

Total L Brands

2,923

14

(14)

2,923

 

Total Franchise Stores:

Stores

Stores

Operating

Operating

at 2/1/14

Opened

Closed

at 5/3/14

Victoria’s Secret Beauty & Accessories

198

13

(2)

209

VS International (Full Assortment)

4

2

-

6

BBW International

55

4

-

59

La Senza International

331

-

(3)

328

Total Franchise

588

19

(5)

602

 

SOURCE L Brands, Inc.


Source: PR Newswire



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